Hyderabad based Gland Pharma will launch its IPO offer on November 9. The firm received SEBI approval last month but announced the IPO launch date recently. The firm was in talks with the merchant banks to set the price band for the scrips. The subscription window will remain open till November 11.
Gland Pharma is more than three decades old company. Currently, Singapore based, Chinese pharma company Fosun Pharma owns 74 percent of the company’s stocks. They acquired the stakes in 2017. The IPO offer will also contain an offer for sale shares from Fosun Pharma and the other stakeholders of the company.
The company caters to a clientele spread in more than 60 countries around the world. They have a track record in producing advanced and sophisticated injectables in contract development, own development, and dossier preparation. On April 2020, Gland Pharma, along with its partners, filed 265 ANDAs in the United States. They have already got an approval on 204 ANDAs.
Gland Pharma’s competitive strengths lie in diverse product portfolio and steady financials.
Gland Pharma IPO Updates
Gland Pharma is going to be the first pharma company to float IPO offers amid lockdown. The last was Eris LIfescience, which listed in 2017. Seeing that pharma stocks are rallying in the exchanges, Gland Pharma IPO may expect healthy appetite from investors.
The IPO size is pegged at Rs 6479.54 cores, will contain both fresh shares and offer for sales scrips from the current stakeholders. Fosun Pharma Pte., which is the major stakeholder with 74 percent shares will offload 1,93,68,686 equities from its holding. The other promoters, Gland Celsus Bio Chemicals, Empower Discretionary Trust, and Nilay Discretionary trust, together will pitch in for 1,54,94,949 equities in the offer for sale.
Gland Pharma is going to launch in IPOs in the price band of Rs 1490-1500. The company has fixed the price after a discussion with the merchant banks. Investors will have to bid for Gland Pharma IPO for the minimum lot size of ten and in multiples of 10 thereafter.
Gland Pharma IPO Facts At A Glance
- The company is the first Chinese company to list in Indian bourses
- Fosun Singapore, which along with Fosun Industrial, Ample Up, Regal Gesture, and Listrous Star, holds 74 percent stakes in Gland Pharma in a pre-offer paid-up capital
- The other promoters will also participate in the offer for sale of shares
- Gland Pharma said it would not receive any money from the offer for sale of shares, but will use Rs 1,250 crores, which it will receive from the sales of fresh shares to meet incremental working capital requirements, capital expenditure requirements, and general corporate purposes
- Before the subscription for Gland Pharma IPO begins on November 9, on November 6, it will open for a day for anchor investors
- The IPOs will list in both National Stock Exchange and Bombay Stock Exchange
- Kotak Mahindra Capital Company, Citigroup Global Markets India, Haitong Securities India and Nomura Financial Advisory and Securities India will act as the lead book-running manager for the issue
Thirteen companies have launched IPOs this year, but Gland Pharma is the first pharma company to make a debut in 2020.
Finalisation of Basis of Allotment of Gland Pharma IPO will happen on November 17, and the shares will list in the exchanges on November 20. You can now bid for Gland Pharma IPO directly from the broker’s website or app using UPI as the method of payment for the bid.